The European Union is stepping up its effort to accelerate defense production and is turning to startups as part of that strategy, with €115 million now being directed toward the sector.

The move reflects a broader push in Europe to strengthen industrial capacity and reduce delays in defense manufacturing, at a time when geopolitical tensions are forcing governments to rethink how quickly critical equipment can be developed and delivered. By backing startups, Europe is betting that younger, more agile companies can help bring faster innovation into a field traditionally dominated by large industrial groups and long procurement cycles.

The funding package is intended to support companies working on defense-related technologies and to help speed up the transition from prototype to production. The emphasis on startups also signals a recognition that innovation in defense is no longer limited to established contractors: smaller firms are increasingly seen as a source of new capabilities, particularly where speed, flexibility and dual-use technologies matter.

In practical terms, the €115 million commitment is meant to help Europe produce more quickly and more efficiently, while strengthening its strategic autonomy. It also highlights a shift in policy thinking: defense is increasingly being treated not only as a matter of security, but also as an industrial and innovation challenge, with startups positioned as a key part of the solution.

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